I did some testing too.
I reproduced the AC3 issue you describe and went a little further in understanding why the mp2 is not played.
According to the VLC streaming features page:
the PS output doesn't support anything else then AC3. Which means mp2 and aac are NOT supported using PS.
Following this hint I changed the code to use mp2a and TS as output method.
My video played perfectly.
I don't know if this can break things on other platforms but it surely works for me.
Now that I started to dirt my hands on the code I'll test with other video formats too